February 9, 2001





HOUSE BILL No. 1937

_____


DIGEST OF HB 1937 (Updated February 7, 2001 3:09 PM - DI 97)



Citations Affected: IC 27-8.

Synopsis: Premium payments to ICHIA. Allows an individual to pay the premium for an Indiana comprehensive health insurance association (ICHIA) policy in cash, by bank draft, by check, by cashier's check, by money order, or by credit card, debit card, charge card, or a similar method. Specifies that liability for a payment is not discharged until the association receives the payment. Allows the association to contract with a bank or credit card vendor for acceptance of bank cards or credit cards, and that any fees charged for use of the card may be charged to the individual. Requires a receipt to be issued to an individual who makes a cash payment.

Effective: July 1, 2001.





Grubb, Smith M




    January 17, 2001, read first time and referred to Committee on Insurance, Corporations and Small Business.
    February 8, 2001, reported _ Do Pass.







February 9, 2001

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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HOUSE BILL No. 1937



    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 27-8-10-11; (01)HB1937.1.1. -->     SECTION 1. IC 27-8-10-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 11. (a) An individual may pay a premium for an association policy:
        (1) in cash;
        (2) by bank draft;
        (3) by check;
        (4) by cashier's check;
        (5) by money order; or
        (6) by credit card, debit card, charge card, or a similar method.
However, if a premium payment is made by bank draft, check, cashier's check, or money order, the liability is not finally discharged and the individual has not paid the premium until the draft, check, or money order has been honored by the institution on which it is drawn. If the payment is made by credit card, debit card, charge card, or similar method, the liability is not finally

discharged and the individual has not paid the premium until the association receives payment or credit from the institution responsible for making the payment or credit.
    (b) The association may contract with a bank or credit card vendor for acceptance of bank or credit cards. However, if there is a vendor transaction charge or discount fee, whether billed to the association or charged directly to the association's account, the association or credit card vendor may collect from the individual using the bank or credit card a fee that may not exceed the highest transaction charge or discount fee charged to the association by the bank or credit card vendor during the most recent collection period. This fee may be collected regardless of any agreement between the bank and a credit card vendor or regardless of any internal policy of the credit card vendor that may prohibit this type of fee. The fee is a permitted additional charge under IC 24-4.5-3-202.
    (c) The association shall issue a receipt for a premium payment that is made with currency.